Dáil debates

Thursday, 19 April 2012

Social Welfare and Pensions Bill 2012: Second Stage (Resumed)

 

8:00 pm

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)

I welcome the opportunity to contribute to the debate on the Social Welfare and Pensions Bill. This is one of the most important items of legislation to come before the House each year. I understand the importance of allowing Members to have their say on what is happening in the area of social welfare, especially in the context of protecting the more vulnerable in society, such as pensioners and others. In light of the difficult times in which we live, prior to the budget everyone was concerned that the Government, which is under severe pressure, would be in a position to protect the old, the vulnerable and the many people who are in receipt of social welfare benefits or pensions. The Government faced a particular challenge in coming up with ways of achieving its goal in this regard, namely, maintaining existing social welfare rates.

As it introduces austerity measures to try to reduce the budget deficit in the coming years, the Government is going to face another major challenge. I am pleased the Minister is present because I wish to put it to her that when difficulties arise in the period ahead in the context of trying to find money to pay pensioners, there is one area on which she must focus. This area has been neglected by successive Ministers but there has never been a more opportune time to take action in respect of it. I refer, of course, to social welfare fraud. I represent a rural constituency and I have heard some unbelievable stories about fraud of this kind. The Minister has a great opportunity - probably better than those which presented themselves to any of her predecessors - to take up the challenge in this regard, particularly as the people are on her side.

Social welfare fraud is having a major effect on the economy. I have been informed by people who want to obtain legitimate employment or to establish businesses in the area of construction or whatever that they cannot compete with those who are operating in the black economy. It is not popular for someone who represents a rural constituency, where a small and open local economy exists and where people are used to getting work done for the lowest price, to say this. However, the truth is that the Minister must tackle the problem of social welfare fraud because it is creating major difficulties for those who want to establish businesses and create jobs.

I must be careful with regard to how I frame my next point. I understand that non-nationals are engaging in major abuses of the social welfare system, particularly those who fly into the country to claim benefits and who then fly out again. The Minister needs to put together a team of investigators to examine the position in this regard. We will never have enough money to pay benefits to genuine claimants if those who are engaging in fraud are not dealt with. I do not wish to tar all of those to whom I refer with the same brush. However, I have been informed about people who are working in other countries and who fly into Ireland to claim social welfare benefits. Will the Minister indicate if the stories in this regard are true? We have a responsibility to ensure fraud of this nature does not occur. If necessary, people should be obliged to sign on three or four times each week to bring this type of fraud to an end.

There has been much discussion in this House and elsewhere with regard to wrongdoing in society. Those who are fraudulently claiming social welfare benefits are committing a wrong against society. I ask that in the coming months the Minister give consideration to the possibility of investigating social welfare fraud. If it proves necessary to appoint people from other parts of the public service to the investigation teams to which I refer, this should be done. In that context, I understand the type of pressure under which the staff of the Department of Social Protection are working at present.

Action must be taken to make it easier for those who are unemployed to take up training courses and return to mainstream employment. I understand many businesses are prepared to take people on for two or three days each week. There is no simple way of encouraging someone to work for two or three days a week, for ten days a month or whatever. However, a large number of employers have shown a willingness to take on people who are currently on the live register on a short-term basis. We could make matters much easier in this regard and thereby create benefits for the tourism industry, the agriculture industry and those whose businesses are seasonal in nature. When businesses of the sort I have highlighted come under pressure at certain times each year, they should be able to liaise with their local social welfare offices or use the Internet to retain the services of individuals who are prepared to work. A glorious opportunity exists to encourage even greater co-operation on this matter and employers' groups would certainly be prepared to put forward ideas in respect of it. The Minister must take up the challenge that exists in this regard.

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